What is a mill rate and how is it established?

The mill rate is determined by dividing the grand levy by the grand list. In Connecticut, property tax rates are expressed in mills, or thousandths of a dollar. A property tax rate of 19.94 mills (2010 mill rate), or .01994, results in the payment of $19.94 for each $1,000 of the property's assessed value. The Board of Finance determines the Town budget and mill rate. The mill rate is then applied to each taxpayer's taxable property.